The Panthers had a six-game winning streak. Then, on May 23, they and the Birmingham Stallions were tied 20-20 in the fourth quarter. Michigan would have had the lead, but the extra point attempt was blocked. The game went into overtime and was won by Birmingham thanks to a 46-yard field goal by Stallions placekicker Scott Norwood.

The Panthers would bounce back with a 42-7 thrashing of the stellar Tampa Bay Bandits, coached by future Florida Gators head coach Steve Spurrier. After making those additions, and installing rookie Bobby Hebert as quarterback, the Panthers then won 11 of their next 13 contests and captured the Central Division championship with a 12-6 record.

On July 17, 1983, the Panthers captured the USFL's first championship with a 24-22 win over the Atlantic Division champion Philadelphia Stars. QB Bobby Hebert hit WR Anthony Carter on a 48-yard touchdown strike with 11:59 left in the fourth quarter for what proved to be the deciding score. Hebert was named MVP of the game, throwing for 319 yards and three touchdowns.

The Panthers wound up spending $6 million during the season—three times what USFL founder David Dixon recommended that a team spend in a single season. As a result, they had NFL-comparable talent at several positions.

The Panthers were expected to romp to another Central Division title in 1984. They were in a division with three expansion teams and a Chicago Blitz team that had swapped nearly all of its players with the last-place Arizona Wranglers. They initially didn't disappoint, sweeping their first six games. However, in the sixth game, a win over the expansion San Antonio Gunslingers, star receiver Anthony Carter broke his arm and was lost for the season. Without their chief offensive weapon the Panthers promptly went into a tailspin, losing eight of their next ten games (the Panthers' only wins in this stretch both came in overtime) to sink to an 8-8 record. Needing to win their last two games against Oklahoma and Chicago just to make the playoffs, Michigan did just that, finishing 10-8.

The first-round playoff game against the Los Angeles Express (in a less-than-tenth-filled Los Angeles Coliseum) turned out to be longest professional football game in history. The Panthers took a 21-13 lead in the fourth quarter, only to have future Hall of Famer Steve Young throw a touchdown pass, then personally score the two-point conversion to knot the game at 21 with 52 seconds remaining. The Panthers had chances to win the game in both the first and second overtimes, but normally reliable kicker Novo Bojovic missed field goals each time. Finally, in the third overtime, rookie Mel Gray (who would later play for the Detroit Lions) ran 24 yards to give LA a 27-21 victory, ending pro football's longest day after 93 minutes and 33 seconds of play time. (Gray's touchdown would prove to be painful for the young star—the force of the tackle at the end of the play broke his arm.) [1]

It turned out to be the Panthers' last game. After the 1984 season was over USFL owners, largely under the influence of New Jersey Generals owner Donald Trump and Chicago franchise owner Eddie Einhorn began talking seriously about moving to a fall schedule in 1986. While the Panthers had developed a loyal following, Taubman was a strong believer in the original spring football concept. He also had no desire to compete with the Detroit Lions, who were owned by his longtime friend William Clay Ford.

Taubman felt like the move was a foregone conclusion. As a result, after the merger between the Oakland Invaders and the Oklahoma Outlaws collapsed, Taubman quietly approached Invaders owner Tad Taube about a possible merger with his Panthers. When the league owners met to vote on moving to the fall, Taubman sent his son with a message for the commissioner—if the teams voted to move to the fall, the Panthers would merge with the Invaders, with the Invaders as the surviving team. When the vote to play in the fall passed, the Panthers and Invaders announced their merger, with Taubman as majority owner of the Invaders.

After the USFL received only $3 in its antitrust lawsuit against the NFL, on which it had staked its survival, the league suspended operations and never returned. The league's abandonment of the Detroit market was a major factor behind the adverse jury award.

The A-11 Football League (A11FL), a planned spring football league which had intended to start play in 2015, had announced its intention to revive the Michigan Panthers for one of its charter franchises.